Active ETFs Now Take 42% of Every Dollar Flowing Into ETFs, Up From 26% in 2024

In 2025, actively managed exchange-traded funds (ETFs) have captured 42% of every dollar flowing into ETFs, a significant jump from 26% the previous year. This surge in inflows into active ETFs signifies a shift in investor preferences, as these funds offer a blend of active management and passive investing strategies. Large players in this space include Dimensional Fund Advisors, Fidelity, Vanguard, BlackRock, JPMorgan Chase, and T. Rowe Price.

While the top dogs in active ETFs are predominantly private firms, BlackRock and JPMorgan Chase stand out as publicly traded companies making significant strides in this area. BlackRock alone controls $3.6 trillion in active assets under management, and it projects $4.2 trillion in active assets globally by 2030. Meanwhile, T. Rowe Price, a veteran of actively managed mutual funds, is expanding its reach into the active ETF market by introducing ETF versions of its popular mutual funds, leveraging its established brand and management teams.

Despite the challenges posed by the proliferation of active ETFs, market participants should remain vigilant in evaluating companies' strategies to capitalize on this trend. Some traditional mutual fund issuers, like Franklin Templeton, have successfully pivoted to both active and passive ETFs, leading to impressive year-to-date gains.

The shift towards active ETFs could potentially benefit well-known fund sponsors that adapt by introducing new products in ETF form or converting existing mutual funds into ETF share classes.